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2020 (3) TMI 676 - AT - Income TaxTP Adjustment - Charging of notional interest pertaining to outstanding balance of receivables from AEs - TPO has applied LIBOR of 4.8% in making the adjustment which was confirmed by the DRP - HELD THAT:- We found that the facts and circumstances in both the years under consideration i.e. A.Y. 2012-13 and 2013-14 are same wherein under similar facts, the addition was made by the A.O. on account of interest pertaining to outstanding receivables from AEs. In all fairness, we restore the matter back to the file of the TPO/AO for deciding the issue afresh in terms of the direction given by the Tribunal in its order [2015 (7) TMI 602 - ITAT MUMBAI] in so far as facts and circumstances for the A.Y. 2009-10 are pari materia to the facts and circumstances which are before the lower authorities for the A.Y. 2012-13 and 2013-14. Incorrect computation of the income tax payable by the assessee and utilization and carry forward of MAT credit by the assessee - HELD THAT:- As stated by the ld AR that the MAT credit was not correctly given by the A.O., therefore, in all fairness, we restore the matter back to the file of the TPO/AO and direct to reverify the carry forward and MAT credit. We direct accordingly. Non grant of full TDS/TCS credit and non consideration of TDS and advance tax payable by erstwhile subsidiary - HELD THAT:- It appears that the TDS credit and advance tax payable by erstwhile subsidiary of the assessee amount go ₹ 1,72,79,041/- was not given which was merged with the assessee w.e.f. 01/04/2011. It was also pointed out by the ld AR that the A.O. has not given credit of advance tax paid by the erstwhile subsidiary of the assessee which was merged with the assessee w.e.f. 01/04/2011. We direct the A.O. to verify the factual position of TDS and advance tax and to give proper credit as per law. We direct accordingly. Incorrect computation of interest U/s 234B/234C due to noncredits/ short credits granted to the assessee - HELD THAT:- We direct the A.O. to verify the computation of interest U/s 234B of the Act. With regard to interest U/s 234C, we direct the A.O. to charge the same on returned income and not on the assessed income. Computation of interest U/s 244A - HELD THAT:- As per the provisions of Section 244A of the Act, interest on refund is to be allowed @ 0.50% per month from the 1st day of April of the assessment year to be date on which the refund is granted. Accordingly, the assessee is entitled for interest u/s 244A of the Act up to the date on which the refund is granted. The A.O. is directed to verify the correctness of interest and grant necessary refund as per law. Adjusting book profit U/s 115JB by adding the disallowance on account of depreciation on office premises - HELD THAT:- Hon’ble Supreme Court in the case of Apollo Tyres Ltd. Vs CIT [2002 (5) TMI 5 - SUPREME COURT] have observed that while computing income U/s 115J, the A.O. has only power of examining whether books of account are certified by authorities under Companies Act as having been properly maintained in accordance with Companies Act and thereafter, he has limited power of making additions and reductions as provided for in Explanation to said Section. It was further held that the A.O. does not have jurisdiction to go behind net profit shown in the P&L account except to extent provided in Explanation to Section 115J of the Act. Respectfully following the decision of the Hon’ble Supreme Court, we do not find any justification in the order of the TPO/A.O. for making addition of the depreciation while computing book profit.
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